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ACG (Actual) Exam Graded A+ 2024
A business organized as a corporation - ANS-does not require that stockholders be personally liable for the debts of the business. A certain company records wages only when it pays them. Recording the payment of wages - ANS-decreases assets and decreases stockholders' equity. A check correctly written by a company for $275 was incorrectly recorded by that same company as $257. On the bank reconciliation - ANS-$18 should be deducted from the cash balance per books. A check correctly written by the company for $257 was incorrectly recorded by that same company as $275. On the bank reconciliation - ANS-$18 should be added to the cash balance per books. A check written by the company for $530 was incorrectly recorded on the company's books as $350. In the bank reconciliation, this $180 error would be - ANS-subtracted from the cash balance per books. A check written by the company for $530 was incorrectly recorded on the company's books as $350. In the bank reconciliation, this $180 error would be - ANS-subtracted from the cash balance per books. A company accepted $60,000 of Visa credit card charges for merchandise sold on July
- The bank that issued the Visa card charges 4% for its credit card use. The company's journal entry to record this transaction will include a debit or debits to - ANS-Cash for $57,600 and Service Charge Expense for $2, A company accepted a customer's Visa card as payment for $500 of merchandise it sold to the customer. The bank that issued the credit card charges a 4% credit card fee. The company's journal entry to record this transaction will include a debit or debits to - ANS-Cash for $480 and Service Charge Expense for $20. A company accepted a customer's Visa card as payment for $900 of merchandise it sold to the customer. The bank that issued the credit card charges a 4% credit card fee. The company's journal entry to record this transaction will include - ANS-debits to Cash $864 and Service Charge Expense $36. A company began the year with retained earnings of $620,000. During the year, the company did the following: Issued common stock, $840, Declared and paid dividends, $160, Incurred expenses, $2,400,
The company's ending retained earnings is $660,000. What was the company's revenue for the year? - ANS-$2,600, A company borrowed money from a bank by signing a three-month note payable in the amount of $15,000 on December 1. The note requires the company to pay interest at an annual rate of 8%. The company records adjusting entries on December 31. The adjusting entry that the company should record for accrued interest on December 31 would include a debit to interest expense for - ANS-$100. A company collected $10,000 on November 1 for six months of rent The revenue reported from this transaction during the current calendar year will be - ANS-$3,333. A company had a transaction that decreased its assets by $5,000 and increased its assets by $5,000 with a net effect of no change in its assets. This transaction could have been a(n) - ANS-payment for a one-year insurance policy that will expire next year. A company had a transaction that increased its assets by $3,000 and increased its liabilities by $3,000. This transaction could have been a(n - ANS-purchase of supplies for $3,000 on account. A company has an employee who is its warehouse custodian and its accountant. An assessment of this situation indicates - ANS-segregation of duties is violated. A company has an employee who is its warehouse custodian and its accountant. An assessment of this situation indicates - ANS-segregation of duties is violated. A company has bonds with a principal value of $1,000,000 outstanding. The unamortized premium on the bonds is $14,000. The company redeemed the bonds at
- What is the company's gain or loss on the redemption? - ANS-$26,000 loss A company has bonds with a principal value of $500,000 outstanding. The unamortized discount on the bonds is $14,000. The company redeemed the bonds at 104. What is the company's gain or loss on the redemption? - ANS-$34,000 loss A company has bonds with a principal value of $500,000 outstanding. The unamortized premium on the bonds is $12,000. The company redeemed the bonds at 102. What is the company's gain or loss on the redemption? - ANS-$2,000 gain A company has bonds with a principal value of $500,000 outstanding. The unamortized premium on the bonds is $14,000. The company redeemed the bonds at 101. What is the company's gain or loss on the redemption? - ANS-$9,000 gain A company has bonds with a principal value of $500,000 outstanding. The unamortized premium on the bonds is $14,000. The company redeemed the bonds at 103. What is the company's gain or loss on the redemption? - ANS-$1,000 loss
Net income, $150, What is its days' sales in inventory? - ANS-65.2 days A company has the following: Sales revenue, $515, Beginning inventory, $75, Ending inventory, $105, Cost of goods sold, $405, Net income, $25, What is its days' sales in inventory? - ANS-94.6 days A company has the following: Sales revenue, $515, Beginning inventory, $75, Ending inventory, $105, Cost of goods sold, $405, Net income, $25, What is its days' sales in inventory? - ANS-94.6 days A company has the following: Units Cost per unitDec. 1, Beginning balance 40 $41Dec. 14, Purchase 60 $42Dec. 21, Purchase 55 $ The company sold 100 units at $85 each on December 23. The company's tax rate is 30%. Operating expenses are $500. The company uses the perpetual inventory system. What is the company's net income using LIFO? - ANS-$2, A company has the following: Cash balance per bank, $11,460 Cash balance per books, $13,200 Outstanding checks, $2,325 Deposits in transit, $3,750 NSF check, $240 Bank service charge, $75The net effect of the adjusting entries that the company will journalize as a result of this reconciliation will - ANS-reduce its cash account by $315. A company has the following: Cash balance per bank, Dec. 31, $48,200. Note receivable of $3,800 plus $200 of interest collected, $4,000. Outstanding checks, $7,100. Deposits in transit, $2,700. Bank service charges, $50. NSF check, $500. How much is the adjusted cash balance on Dec. 31? - ANS-43, A company has the following: Cash balance per books on Dec. 31, $9,400. Deposits in transit, $1,100. Notes receivable with interest collected by bank, $2,500. Bank service charges, $50. Outstanding checks, $1,450. NSF check, $400. How much is the adjusted cash balance per books on Dec. 31? - ANS-$11, A company has: Cash balance per books on Dec. 31, $5,400 Deposits in transit, $ Outstanding checks, $2,500 NSF check, $320 Notes receivable and interest collected by bank, $950 Bank charge for check printing, $65The adjusted cash balance per books on Dec. 31 is - ANS-$5,965.
A company has: Cash balance per books on Dec. 31, $5,400 Deposits in transit, $ Outstanding checks, $2,500 NSF check, $320 Notes receivable and interest collected by bank, $950 Bank charge for check printing, $65The adjusted cash balance per books on Dec. 31 is - ANS-$5,965. A company holds a $10,000, 120-day, 6% note issued by a corporation. What is the journal entry recorded by the company that holds the note when it matures assuming no interest has previously been accrued? - ANS-Debit Cash for $10,200, credit Notes Receivable for $10,000, and credit Interest Revenue for $ A company issues a $5,000, 8%, 9-month note on June 1. How much accrued interest should it report on its balance sheet dated December 31 of the same year? - ANS-$ A company issues a note payable in exchange for cash. This transaction will immediately affect the - ANS-balance sheet and cash flows statement only. A company overstated its ending inventory by $1,000 at the end of its first year. It never noticed the error. What is the effect on the error on the company's stockholders equity (i) at the end of the first year and (ii) at the end of the second year, respectively? - ANS- (i) overstated; (ii) neither over nor understated A company paid $200,000 for a machine a few years ago. This year, the machine was completely destroyed in a fire. At the date of the fire, the accumulated depreciation on the machine was $80,000. An insurance check for $100,000 was received as a result of the fire. No journal entry for the casualty was recorded until the company received the check from the insurance company. The company's entry to record the insurance proceeds will include a - ANS-loss on disposal of plant assets of $20,000. A company pays employees' salaries. This transaction will immediately affect the - ANS- balance sheet, income statement, retained earnings statement, and cash flows statement. A company purchased a machine for $80,000 on January 1 of the current year and depreciates it on a straight-line basis over a 10-year life assuming no salvage value. If the company sells the machine for $26,000 on June 30 of the fifth year, what would be the company's gain or loss from the sale? - ANS-$18,000 loss A company purchased a plant asset for $74,000. It has a salvage value of $10,000 and a five year life. It calculates depreciation using the straight-line method. The balance of the company's Accumulated Depreciation account at the end of the current year after- adjusting entries is $25,600. What is the asset's remaining useful life? - ANS-3 years A company purchased a truck for $25,000. The company paid $1,300 to paint the company's logo on the truck. The estimated salvage value and useful life are $3,
the company record when it receives payment? - ANS-$1,274 debit to Cash, $26 debit to Sales Discount, and $1,300 credit to Accounts Receivable A company sold $6,000 of merchandise to customers who charged their purchases with a bank credit card. The company's bank charges it a 4% fee. Which one of the following is part of the journal entry to record this transaction? - ANS-Debit to Cash for $5, A company uses a perpetual inventory system to record the following events involving a recent purchase of inventory: On May 1, it purchased merchandise for $40,000, terms 2/10, n/30. On May 3, it paid freight costs of $200 on merchandise purchased. On May 6, it returned $800 of merchandise to the supplier. On May 9, it paid the amount due to the supplier. As a result of these events, the company's inventory - ANS-increased by $38,616. A company uses a perpetual inventory system. It purchased $10,000 of merchandise with terms of 2/10, n/30. It also must pay a $200 shipping charge. The company paid for both the merchandise and the shipping charge nine days after their invoice date. Which of the following is part of the journal entry the company records when it pays the shipping charge? - ANS-A debit to Inventory for $ A company uses the percentage of receivables method for estimating bad debts expense. The Accounts Receivable balance is $100,000 at year-end and the total credit sales were $800,000. Management estimates that 4% of receivables will be uncollectible. What adjusting entry will be recorded if the Allowance for Doubtful Accounts has a credit balance of $800 before adjustment? - ANS-Bad Debts Expense 3, Allowance for Doubtful Accounts 3, A company uses the percentage-of-receivables method for recording bad debts expense. The accounts receivable balance is $60,000 at year-end. The total credit sales were $2,300,000 for the year. Management estimates that 3% of receivables will be uncollectible. What adjusting entry should be made if the Allowance for Doubtful Accounts has a debit balance of $200 before the year-end adjusting entry for Bad Debt Expense? - ANS-Bad Debts Expense 2, Allowance for Doubtful Accounts 2, A company uses the percentage-of-receivables method for recording bad debts expense. The accounts receivable balance is $80,000 at year-end. The total credit sales were $2,500,000 for the year. Management estimates that 3.5% of receivables will be uncollectible. What adjusting entry should be made if the Allowance for Doubtful Accounts has a debit balance of $100 before the year-end adjusting entry for Bad Debt Expense? - ANS-Bad Debts Expense 2, Allowance for Doubtful Accounts 2,
A company uses the periodic inventory method and the beginning inventory is overstated by $1,000 because the ending inventory in the previous period was overstated by $1,000; the ending inventory for this period is correct. The amounts reflected in the current end of the period balance sheet are - ANS-assets are correct and stockholders' equity is correct. A company uses the periodic inventory method. An error in the physical count of goods on hand at the end of a period resulted in a $1,000 understatement of the ending inventory. The effect of this error in the current period is that cost of goods sold is (i) _________________ and net income is (ii) __________________. - ANS-(i) overstated; (ii) understated A company uses the periodic inventory method. An error in the physical count of goods on hand at the end of a period resulted in a $1,000 understatement of the ending inventory. The effect of this error in the current period is that cost of goods sold is (i) _________________ and net income is (ii) __________________. - ANS-(i) overstated; (ii) understated A company uses the periodic inventory method. An error in the physical count of inventory at the end of a period resulted in an understatement of the ending inventory. The effect of this error in the current period is that gross profit is (i) _________________ and retained earnings is (ii) ___________________. - ANS-(i) understated; (ii) understated A company uses the periodic inventory method. An overstatement of ending inventory in one period results in - ANS-an understatement of net income of the next period. A company uses the periodic inventory method. An understatement of ending inventory in one period results in - ANS-an overstatement of net income of the next period. A company uses the periodic inventory method. If beginning inventory is overstated by $1,000 because the prior's year's ending inventory was overstated by $1,000. The company's ending inventory for this period is correct. The effect of this error in the current period is that cost of goods sold is (i) _________________ and net Income is (ii) ___________________. - ANS-(i) overstated; (ii) understated A company's accounting records show the following account balances: Sales $ 430, Purchases 325, Beginning Inventory 32, Ending Inventory 29, Purchase Returns and Allowances 6, The company's cost of goods sold is - ANS-$322,000. A company's accounting records show the following account balances: Sales $ 430,
Common stock, $120, Dividends, $40, Equipment, $300, Retained earnings, Not given Salaries expense, $500, Service revenue, $560, Supplies, $200, Determine the company's year-end retained earnings. - ANS-$320,000. A complete journal entry does not show - ANS-the new balance in the accounts affected by the transaction. A corporation declared a cash dividend of $1.00 per share on 20,000 shares of common stock on January 15. The dividend is to be paid one month later on February 15 to stockholders of record on January 31. Which of the following summarizes the effects of the journal entry recorded on the date of payment on February 15? - ANS-It decreases liabilities and decreases assets. A corporation declared a cash dividend on November 15 to be paid on December 15 to stockholders owning the stock on November 30. Given these facts, the date of December 15, is referred to as the - ANS-payment date. A corporation had $48,000 at the beginning of the year. During the year, it had sales on account of $21,000 and cash disbursements of $25,000 during the year. At the end of the year, it had $51,000. What was the corporation's cash receipts for the year? - ANS- $28, A corporation had net sales during the year of $400,000 and cost of goods sold of $150,000. The net accounts receivable at the beginning of the year was $60,000 and at the end of the year was $70,000. The balance of total assets at the beginning of the year was $1,200,000 and at the end of the year was $1,300,000. How much is the accounts receivables turnover? - ANS-6. A corporation had net sales during the year of $400,000 and cost of goods sold of $150,000. The net accounts receivable at the beginning of the year was $60,000 and at the end of the year was $70,000. The balance of total assets at the beginning of the year was $1,200,000 and at the end of the year was $1,300,000. How much is the accounts receivables turnover? - ANS-6. A corporation has the following: Cost of goods sold, $100,000 Operating income, $30,000 Sales discounts, $5,000 Sales returns and allowances, $10,000 Sales revenue, $175,000 Net income, $20,000Which of the following is closest to this company's profit margin? - ANS-12.5% A corporation has the following: Cost of goods sold, $85,000 Operating income, $10,000 Sales discounts, $3,000 Sales returns and allowances, $12,000 Sales revenue,
$140,000 Net income, $5,000Which of the following is closest to this company's profit margin? - ANS-4% A corporation has the following:Sales revenue, $430,000Sales discounts, $10,000Gross profit, $150,000Operating expenses, $80,000Other expenses, $30,000How much is its cost of goods sold? - ANS-$270, A corporation issued 1,000 shares of its $3.00 par value common stock for $12.00 per share and later repurchased 50 of those shares for $9.00 per share. Which of the following will be debited when the repurchase of the shares is journalized? - ANS- Treasury Stock for $ A corporation issued 1,500 bonds with a face value of $1,000 each at 99. The journal entry to record the issuance includes - ANS-a credit to Bonds Payable for $1,500,000. A corporation issued 1,500 shares of common stock at $10 per share. If the stock has a par value of $6 per share, which of the following will be part of the journal entry to record the issuance? - ANS-Debit to Cash for $15, A corporation issued 10-year bonds with a face value of $400,000 and a contractual rate of interest of 6% at 99. What is its total cost of borrowing? - ANS-$244, A corporation issued 10,000 of $3 par value common stock for $7 per share. Which of the following will be part of the journal entry to record the issuance? - ANS-A credit of $30,000 to Common Stock A corporation issued 3,000 shares of $6 par value common stock for $7 per share. Which of the following is included in the journal entry to record the issuance? - ANS- Credit to Common Stock for $18, A corporation issued 8,000 of $2 par value common stock for $5 per share. Which of the following will be part of the journal entry to record the corporation's issuance of common stock? - ANS-A credit of $16,000 to Common Stock A corporation issues $1,000,000 of 8%, 5-year bonds when bonds of similar risk are paying 7.5%. The 7.5% rate of interest is called the __________ rate. - ANS-effective A corporation issues $1,250,000 of 10-year, 9% bonds dated January 1 at 94. The journal entry to record the issuance includes - ANS-a debit to Cash for $1,175,000. A corporation issues $100,000, 6%, 10-year bonds on January 1 for $106,000. Interest is paid annually on January 1. If the corporation uses the straight-line method to amortize bond premiums and discounts, the amount of bond interest expense in the first year is - ANS-$5,
A corporation issues a $900,000, 8%, 25-year mortgage note. The terms provide for annual installment payments of $84,311. What is the remaining unpaid principal balance of the mortgage payable account after the second annual payment? - ANS-$874, A corporation issues a $900,000, 9%, 25-year mortgage note. The terms provide for annual installment payments of $91,626. What is the remaining unpaid principal balance of the mortgage payable account after the second annual payment? - ANS-$877, A corporation purchased a one-year insurance policy on March 1 of the current year for $48,000. The insurance policy will be in effect from March 1 through February 28 of the next year. The company recorded the payment as prepaid Insurance. The company neglects to record the year-end adjusting entry at the end of the current year. As a result, the company's current year - ANS-net income and assets will be overstated by $40,000. A corporation purchased a piece of land for $50,000. The corporation paid attorney's fees of $5,000 and brokers' commissions of $4,000 in connection with the purchase. An old building on the land was torn down at a cost of $2,000, and proceeds from the scrap were $500. The corporation also assumes $5,000 of property taxes on the land owed by the previous owner. How much is the total cost of the land? - ANS-$65, A corporation purchased a piece of land for $60,000. The corporation paid attorney's fees of $5,000 and brokers' commissions of $4,000 in connection with the purchase. An old building on the land was torn down at a cost of $3,000, and proceeds from the scrap were $700. The corporation also assumes $5,000 of property taxes on the land owed by the previous owner. How much is the total cost of the land? - ANS-$76, A corporation reported net income of $24,000, net sales of $400,000, average stockholders' equity of $1,000,000, and average common shares outstanding of 6,000. It paid $8,000 of dividends to preferred stockholders. How much was its earnings per share? - ANS-$2. A corporation reports the following: Sales revenue, $400,000; sales discounts, $5,000; sales returns and allowances, $15,000; operating expenses, $25,000; cost of goods sold, $310,000; income tax expense, $10,000. How much are gross profit and income from operations, respectively? - ANS-$70,000 and $45, A corporation reports the following: Sales revenue, $450,000; sales discounts, $10,000; operating expenses, $35,000; cost of goods sold, $320,000; income tax expense, $10,000. How much is its gross profit and income from operations, respectively? - ANS- $120,000 and $85, A corporation retires its $100,000 face value bonds at 104 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $102,745. Which of the following is part of the entry to record the bond redemption? - ANS-A debit of $2,745 to Premium on Bonds Payable
A corporation sold equipment for $32,000. The equipment had an original cost of $96,000 and accumulated depreciation of $48,000. Ignoring the tax effect, as a result of the sale - ANS-net income will decrease $16,000. A corporation uses the perpetual inventory system. It sells merchandise on account for $15,000 with terms 1/15, n/30. It pays a shipping company $250 to transport the merchandise to the buyer. How would the corporation record its payment of the transportation charge? - ANS-Debit freight-out for $250; credit cash for $250. A corporation uses the perpetual inventory system. On May 1, it sells merchandise on account for $10,000 with terms 2/10, n/30 to a customer. The corporation had paid $6,000 to acquire the merchandise. On May 7, the customer returns merchandise with an invoice price of $1,000 to the corporation. The merchandise returned to the corporation had cost the corporation $600. On May 10, the corporation receives payment for the merchandise retained by the customer. The journal entry that the corporation records when it receives the payment from the customer on May 10 includes a - ANS-debit to cash for $8,820. A corporation uses the perpetual inventory system. On May 1, it sells merchandise on account for $10,000 with terms 2/10, n/30. The corporation had paid $6,000 to acquire the merchandise. On May 7, the customer returns merchandise with an invoice price of $1,000 to the corporation. The merchandise returned to the corporation had cost the corporation $600. On May 30, the corporation receives payment for the merchandise retained by the customer. The journal entry that the corporation records when it receives the payment from the customer on May 30 includes a - ANS-debit to cash for $9,000. A corporation uses the perpetual inventory system. On May 1, it sells merchandise on account for $10,000 with terms 2/10, n/30. The corporation had paid $6,000 to acquire the merchandise. On May 7, the customer returns merchandise with an invoice price of $1,000 to the corporation. The merchandise returned to the corporation had cost the corporation $600. On May 30, the corporation receives payment for the merchandise retained by the customer. The journal entry that the corporation records when it receives the payment from the customer on May 30 includes a - ANS-debit to cash for $9,000. A corporation's balance sheet shows the following: Preferred stock, $20 par value, 8% cumulative, 40,000 shares authorized; 20,000 shares issued $ 400, Common stock, $10 par value, 4,000,000 shares authorized; 2,600,000 shares issued, 2,560,000 shares outstanding 26,000, Paid-in capital in excess of par value - preferred stock 80, Paid-in capital in excess of par value - common stock 36,000, Retained earnings 10,200, Treasury stock (40,000 shares) 840,
A debit is the normal balance for which account listed below? - ANS-Cash A deposit of $530 was incorrectly recorded by the company on its books as a deposit of $350. In the bank reconciliation, this $180 error would be - ANS-added to the cash balance per books. A journal is least useful for - ANS-reporting the balances of each account affected by the journal entry. A ledger - ANS-is a collection of all of the accounts used by a company with their balances and changes in balances. A low days' in inventory may indicate - ANS-there is a relatively low chance of inventory becoming obsolete before it can be sold. A low days' sales in inventory may indicate - ANS-the company has a relatively small amount of funds tied up in inventory. A low days' sales in inventory may indicate - ANS-there is a relatively high chance that sales opportunities may be lost because of inventory shortages. A NSF check should appear in which section of the bank reconciliation? - ANS- Deduction from the balance per books. A partial list of a corporation's accounts shows the following account balances: Retained earnings, $350,000Treasury stock—common, $20,000Paid-in capital in excess of par value—common, $75,000Treasury stock—preferred, $30,000Common stock, $200,000Preferred stock, $175,000Paid-in capital in excess of par value— preferred, $55, How much is total stockholders' equity? - ANS-$805, A partial list of a corporation's accounts shows the following account balances: Retained earnings, $375,000Treasury stock—common, $20,000Paid-in capital in excess of par value—common, $60,000Treasury stock—preferred, $20,000Common stock, $200,000Preferred stock, $175,000Paid-in capital in excess of par value— preferred, $60, How much is total stockholders' equity? - ANS-$830, A promissory note will likely be used in all of the following settings except - ANS-when the party making the note is a high risk creditor. A transaction decreased a company's assets by $5,000 and decreased its stockholders' equity by $5,000. This transaction could have been a(n) - ANS-payment of rent for the month.
A transaction decreased a company's assets by $5,000 and increased other assets by $5,000 with a net effect of no change in its total assets. This transaction could have been a(n) - ANS-purchase of supplies for cash. A transaction increased a company's assets by $5,000 and increased its liabilities by $5,000. This transaction could have been a(n) - ANS-a note payable issued to a creditor in exchange for a loan. A transaction increased a company's assets by $5,000 and increased its stockholders' equity by $5,000. This transaction could have been a(n) - ANS-investment of cash into the business by the stockholders. A transaction increased a company's assets by $5,000 and increased its stockholders' equity by $5,000. This transaction could have been a(n) - ANS-investment of cash into the business by the stockholders. A transaction increased a company's assets by $5,000 and increased its stockholders' equity by $5,000. This transaction could have been a(n) - ANS-receipt of cash in exchange for performing services to a customer. A transaction increased a company's assets by $5,000 and increased its stockholders' equity by $5,000. This transaction could have been a(n) - ANS-receipt of cash in exchange for performing services to a customer. A trial balance will balance even if - ANS-a $1,000 journal entry was posted twice. A trial balance will not balance if - ANS-a $100 cash dividend is debited to Dividends for $1,000 and credited to Cash for $100. Accounts receivable are reported in the current assets section of the balance sheet at - ANS-net realizable value. Accounts receivable turnover ratio - ANS-net credit sales/average net accounts receivable Accrued expenses are expenses incurred that are not yet paid or recorded. An adjusting entry made to record an accrued expense - ANS-debit an expense account and credits a liability account. Adjusting entries affect - ANS-one income statement account and one balance sheet account. Adjusting entries affect - ANS-one income statement account and one balance sheet account.
What is Moore's correct ending inventory balance at December 31? - ANS-$356, At December 31, Moore Company's inventory records indicated a balance of $420,000. Upon further investigation it was determined that this amount included the following: - ANS-$388, At the beginning of the year, a company had accounts receivable of $700,000 and an allowance for doubtful accounts with a credit balance of $60,000. During the current year, sales on account were $195,000 and collections on account were $110,000. Also during the current year, the company wrote off $10,000 in uncollectible accounts. At year-end, an analysis of outstanding accounts receivable indicated that the allowance for doubtful accounts should have a $32,000 credit balance so the company records the appropriate year-end adjusting entry. How much did the cash realizable value change during the current year? - ANS-$103,000 increase At the end of the year, a company had retained earnings of $2,640,000. During the year, the company reported the following: Issued common stock, $120, Declared and paid dividends, $25, Net income, $412,000. How much was the retained earnings balance at the beginning of the same year? - ANS-$2,253, At the end of the year, a corporation has assets of $3,500 and equity of $2,000. How much are the company's liabilities at the end of the year? - ANS-$1, At the end of the year, a corporation has assets of $6,500 and liabilities of $2,000. How much is the company's equity at the end of the year? - ANS-$4, At the start of its first year, a corporation issued 5,000 shares of 8%, $50 par value, non- cumulative preferred stock and 100,000 shares of $1 par value common stock. The corporation declared and paid dividends of $15,000 in the first year. In its second year, the corporation declared and paid dividends of $60,000. What are the dividends received by the common stockholders in the second year? - ANS-$40, At the start of the current year, a company paid for the following in cash: Copyrights, $200, Equipment, $25,000, Goodwill, $3,500, Inventory, $1,500, Land, $15,000, Patents, $1,000, Research and development, $1,500, Supplies, $1,500, Trademarks, $1,200,
It amortizes its intangibles over 10 years. Determine its current year amortization expense. - ANS-$120, At the start of the current year, a company paid for the following in cash: Copyrights, $500, Equipment, $25,000, Goodwill, $4,500, Inventory, $4,000, Land, $15,000, Prepaid rent, $500, Research and development, $2,000, Supplies, $1,500, Trademarks, $1,000, It amortizes its intangibles over 10 years. Determine its current year amortization expense. - ANS-$50, At the start of the current year, a company paid for the following in cash: Equipment, $25,000, Goodwill, $4,500, Inventory, $1,500, Land, $15,000, Patents, $2,500, Research and development, $2,000, Supplies, $3,000, Trademarks, $1,000, It amortizes its intangibles over 10 years. Determine its current year amortization expense. - ANS-$250, At the start of the current year, a corporation's retained earnings account had a credit balance of $280,000. During the year, the corporation had a net loss of $60,000 and paid dividends to the stockholders of $40,000. It also borrowed $8,000 by issuing a note. At December 31, the balance in retained earnings is - ANS-$180,000 credit. At the start of the current year, a corporation's retained earnings account had a credit balance of $282,000. During the year, the corporation earned revenues of $40,000, incurred expenses of $24,000. At the end of the year, it purchased equipment for $10,000 in exchange for a $10,000 note and it paid dividends of $4,000. What is the balance in retained earnings at the end of the year? - ANS-$294,000 credit At the start of the month, a corporation reported retained earnings of $136,000. During the month, it earned $20,000, incurred expenses of $12,000, purchased equipment for $5,000 and paid dividends of $2,000. What is the balance in retained earnings at the end of the month? - ANS-$142,000 credit At the start of the month, a corporation reported retained earnings of $136,000. During the month, it earned $20,000, incurred expenses of $12,000, purchased equipment for
